Wellfleet Credit Partners Completes Fourth CLO Offering

May 04, 2017 11:45 AM Eastern Daylight Time

GREENWICH, Conn.--(BUSINESS WIRE)--Wellfleet Credit Partners (“Wellfleet”) announced today the closing of a
$457.8 million collateralized loan obligation (“CLO”), referred to as
“Wellfleet CLO 2017-1.” Wellfleet CLO 2017-1 represents the fourth CLO
issuance for Wellfleet, the performing credit business of Littlejohn &
Co., LLC (“Littlejohn”), a private investment firm. Benefitting from
supportive market conditions and investor receptivity, CLO 2017-1 was
upsized approximately $50.0 million during marketing. With the
completion of this CLO, Wellfleet is managing four CLOs that total over
$1.5 billion in aggregate. The Wellfleet platform has completed four
CLOs in the past 20 months.

The CLO will be backed by a diversified portfolio of broadly syndicated
senior secured loans. Five classes of notes rated Aaa through Ba3 by
Moody’s and one class of notes rated AAA by Fitch totaling $414.2
million were placed. In addition to several non-affiliated investors,
Littlejohn funds, as well as its partners, invested in the CLO. The CLO
vehicle will have a two-year non-call and a four-year reinvestment
period with a final maturity of 12 years. Wellfleet will retain equity
through a majority-owned affiliate in order to comply with U.S. risk
retention requirements.

Scott McKay, Wellfleet Portfolio Manager, stated, “We are appreciative
of the support that the transaction received from our existing
investors, and that we also added many new investors across the capital
structure. With this CLO, Wellfleet was able to draw upon a global
investor base.”

Class

Par Size($ in Millions)

Ratings(Moody’s/Fitch)

Coupon

A-1

290.25

Aaa/AAA

3m L+132

A-2

52.90

Aa2/NR

3m L+170

B

24.70

A2/NR

3m L+250

C

28.00

Baa3/NR

3m L+380

D

18.30

Ba3/NR

3m L+605

Subordinated

43.65

Not Rated

Total

$457.80

Wellfleet Credit Partners was established in 2015 as part of the
Littlejohn Debt Management business.

Dennis Talley, Wellfleet Portfolio Manager, commented, “We are pleased
that we have navigated varying market environments to both invest in
underlying credits, as well as to be a consistent issuer of new CLO
vehicles. We look forward to continuing to grow the Wellfleet business.”

Citigroup Global Markets acted as the arranger for the CLO. Dechert LLP
acted as legal advisor to Wellfleet.

The securities offered in the CLO have not been registered under the
Securities Act of 1933, as amended, or any state securities laws, and
may not be offered or sold in the United States absent registration or
pursuant to an exemption from the registration under the Securities Act
and applicable state securities laws. This release does not constitute
an offer to sell or a solicitation of an offer to buy any such
securities.

About Littlejohn & Co., LLC

Littlejohn & Co. is a Greenwich, Connecticut-based deep-value, special
situations investor investing in middle-market companies through all
economic cycles. The firm makes a broad range of equity and debt
investments in undervalued companies that can benefit from Littlejohn’s
operational and strategic approach. For more information, visit www.littlejohnllc.com.